Module 3

MOTIVATION

To improve the overall performance in a business it becomes essential to

increase the efficiency of human beings. The performance of persons
depends up on two factors, that is (1) ability to do a work, and (2)
motivation. Both, these factors, taken together, will increase the
efficiency of human beings.

MEANING AND DEFINITION

Motivation is an important factor which encourages person to give their

best performance and help in reaching enterprise goals.

According to Berelson and Steiner : A motive is an inner state that

energizes, or moves and directs or channels behaviour goals:.

According to Dubin : ‘Motivation is the complex forces starting and

keeping a person at work in an organization.’

TYPES OF MOTIVATION

When a manager wants to get more work from his subordinate then he
will have to motivate them for improving their performance.

1. Positive Motivation. Positive motivation or incentive motivation is

based on reward. The workers are offered incentives for achieving
the desired goals. The incentives may be in the shape of more pay,
promotion, recognition of work, etc. The employees are offered the
 incentives and try to improve their performance willingly. Positive
motivation is achieved by the co-operation of employees and they
have a feeling of happiness.
2. Negative Motivation. Negative or fear motivation is based on force
or fear. Fear causes employees to act in certain way. In case, they
do not act accordingly then they may be punished with demotions
or lay-offs. The fear acts as a push mechanism. The employees do
not willingly co-operate, rather they want to avoid the punishment.

Motivation theories

Some of the most important theories of motivation are as follows: 1. Maslow’s

Need Hierarchy Theory 2. Herzberg’s Motivation Hygiene Theory 3. McClelland’s
Need Theory 4. McGregor’s Participation Theory(theory X and theory Y) 5.
Alderfers ERG theory 6. Vroom’s Expectancy Theory 7. Porter and Lawler’s
Expectancy Theory.

1. Maslow’s Need Hierarchy Theory:

It is probably safe to say that the most well-known theory of motivation is
Maslow’s need hierarchy theory Maslow’s theory is based on the human needs.
Drawing chiefly on his clinical experience, he classified all human needs into a
hierarchical manner from the lower to the higher order.

In essence, he believed that once a given level of need is satisfied, it no longer

serves to motivate man. Then, the next higher level of need has to be activated in
order to motivate the man. Maslow identified five levels in his need hierarchy as
shown in figure :

These are now discussed one by one:

1. Physiological Needs:
These needs are basic to human life and, hence, include food, clothing, shelter, air,
water and necessities of life. These needs relate to the survival and maintenance of
human life. These needs are to be met first at least partly before higher level needs
emerge. Once physiological needs are satisfied, they no longer motivate the man.

2. Safety Needs:
After satisfying the physiological needs, the next needs felt are called safety and
security needs. These needs find expression in such desires as economic security
and protection from physical dangers. Meeting these needs requires more money
and, hence, the individual is prompted to work more. Like physiological needs,
these become inactive once they are satisfied.

3. Social Needs:
Man is a social being. He is, therefore, interested in social interaction,
companionship, belongingness, etc. It is this socialising and belongingness why
individuals prefer to work in groups and especially older people go to work.
4. Esteem Needs:
These needs refer to self-esteem and self-respect. They include such needs which
indicate self-confidence, achievement, competence, knowledge and independence.
The fulfillment of esteem needs leads to self-confidence, strength and capability of
being useful in the organisation. However, inability to fulfill these needs results in
feeling like inferiority, weakness and helplessness.

5. Self-Actualisation Needs:

This level represents the culmination of all the lower, intermediate, and higher
needs of human beings. In other words, the final step under the need hierarchy
model is the need for self-actualization. This refers to fulfillment.In effect, self-
actualization is the person’s motivation to transform perception of self into reality.

According to Maslow, the human needs follow a definite sequence of domination.

The second need does not arise until the first is reasonably satisfied, and the third
need does not emerge until the first two needs have been reasonably satisfied and it
goes on. The other side of the need hierarchy is that human needs are unlimited.

The main criticisms of the theory include the following:

1. The needs may or may not follow a definite hierarchical order. So to say, there
may be overlapping in need hierarchy. For example, even if safety need is not
satisfied, the social need may emerge.

2. The need priority model may not apply at all times in all places.

3. Researches show that man’s behaviour at any time is mostly guided by

multiplicity of behaviour. Hence, Maslow’s preposition that one need is satisfied at
one time is also of doubtful validity.
4. In case of some people, the level of motivation may be permanently lower. For
example, a person suffering from chronic unemployment may remain satisfied for
the rest of his life if only he/she can get enough food.

(continuation )
2. Herzberg’s Motivation Hygiene Theory:
The psychologist Frederick Herzberg extended the work of Maslow and propsed a
new motivation theory popularly known as Herzberg’s Motivation Hygiene (Two-
Factor) Theory. Herzberg conducted a widely reported motivational study on 200
accountants and engineers employed by firms in and around Western
Pennsylvania.

He asked these people to describe two important incidents at their jobs:

(1) When did you feel particularly good about your job, and

(2) When did you feel exceptionally bad about your job? He used the critical
incident method of obtaining data.

The responses when analysed were found quite interesting and fairly consistent.
The replies respondents gave when they felt good about their jobs were
significantly different from the replies given when they felt bad. Reported good
feelings were generally associated with job satisfaction, whereas bad feeling with
job dissatisfaction. Herzberg labelled the job satisfiers motivators, and he
called job dissatisfies hygiene or maintenance factors. Taken together, the
motivators and hygiene factors have become known as Herzberg’s two-factor
theory of motivation

Herzberg’s motivational and hygiene factors have been shown in the Table
According to Herzberg, the opposite of satisfaction is not dissatisfaction. The
underlying reason, he says, is that removal of dissatisfying characteristics from a
job does not necessarily make the job satisfying. The opposite of ‘satisfaction’ is
‘no satisfaction’ and the opposite of ‘dissatisfaction’ is ‘no dissatisatisfaction’.

According to Herzberg, today’s motivators are tomorrow’s hygiene because the

latter stop influencing the behaviour of persons when they get them. Accordingly,
one’s hygiene may be the motivator of another.

However, Herzberg’s model is labeled with the following criticism also:

1. People generally tend to take credit themselves when things go well. They blame
failure on the external environment.

2. The theory basically explains job satisfaction, not motivation.

3. Even job satisfaction is not measured on an overall basis. It is not unlikely that a
person may dislike part of his/ her job, still thinks the job acceptable.

4. This theory neglects situational variable to motivate an individual.

Because of its ubiquitous nature, salary commonly shows up as a motivator as well

as hygine.

Regardless of criticism, Herzberg’s ‘two-factor motivation theory’ has been widely

read and a few managers seem untaminar with his recommendations. The main use
of his recommendations lies in planning and controlling of employees work.

3. McClelland’s Need Theory:

McClelland’s need-theory is closely associated with learning theory, because
he believed that needs are learned or acquired by the kinds of events people
experienced in their environment and culture.

He found that people who acquire a particular need behave differently from
those who do not have. His theory focuses on Murray’s three needs;
achievement, power and affiliation. They are defined as follows:

Need for Achievement:

Need for achievement is a behaviour directed toward competition with a
standard of excellence. McClelland found that people with a high need for
achievement perform better than those with a moderate or low need for
achievement, and noted regional / national differences in achievement
motivation.
Through his research, McClelland identified the following three
characteristics of high-need achievers:
1. High-need achievers have a strong desire to assume personal responsibility
for performing a task for finding a solution to a problem.

2. High-need achievers tend to set moderately difficult goals and take

calculated risks.

3. High-need achievers have a strong desire for performance feedback.

Need for Power:

The need for power is concerned with making an impact on others, the desire
to influence others, the urge to change people, and the desire to make a
difference in life. People with a high need for power are people who like to
be in control of people and events. This results in ultimate satisfaction to
man.

People who have a high need for power are characterized by:
1. A desire to influence and direct somebody else.

2. A desire to exercise control over others.

3. A concern for maintaining leader-follower relations.

Need for Affiliation:

The need for affiliation is defined as a desire to establish and maintain
friendly and warm relations with other people’. The need for affiliation, in
many ways, is similar to Maslow’s social needs.

The people with high need for affiliation have these characteristics:
1. They have a strong desire for acceptance and approval from others.

2. They tend to conform to the wishes of those people whose friendship and
companionship they value.

3. They value the feelings of others.

4. McGregor’s Participation Theory:

Douglas McGregor formulated two distinct views of human being based on
participation of workers. The first basically negative, labeled Theory X, and
the other basically positive, labled Theory Y.

Theory X is based on the following assumptions:

1. People are by nature indolent. That is, they like to work as little as
possible.

2. People lack ambition, dislike responsibility, and prefer to be directed by

others.

3. People are inherently self-centered and indifferent to organisational needs

and goals.

4. People are generally gullible and not very sharp and bright.

On the contrary, Theory Y assumes that:

1. People are not by nature passive or resistant to organisational goals.

2. They want to assume responsibility.

3. They want their organisation to succeed.

4. People are capable of directing their own behaviour.

5. They have need for achievement.

. The fact remains that no organisational man would actually belong either to
theory X or theory Y. In reality, he/she shares the traits of both. What
actually happens is that man swings from one set or properties to the other
with changes in his mood and motives in changing environment.

5.Vroom’s Expectancy Theory:

One of the most widely accepted explanations of motivation is offered by Victor Vroom in his
Expectancy Theory” It is a cognitive process theory of motivation. The theory is founded on the
basic notions that people will be motivated to exert a high level of effort when they believe there
are relationships between the effort they put forth, the performance they achieve, and the
outcomes/ rewards they receive.

The relationships between notions of effort, performance, and reward are depicted in Figure

Thus, the key constructs in the expectancy theory of motivation are:

1. Valence:
Valence, according to Vroom, means the value or strength one places on a particular outcome or
reward.

2. Expectancy:
It relates efforts to performance.
3. Instrumentality:
By instrumentality, Vroom means, the belief that performance is related to rewards.

Thus, Vroom’s motivation can also be expressed in the form of an equation as follows:
Motivation = Valence x Expectancy x Instrumentality

Being the model multiplicative in nature, all the three variables must have high positive values to
imply motivated performance choice. If any one of the variables approaches to zero level, the
possibility of the so motivated performance also touches zero level.

However, Vroom’s expectancy theory has its critics. The important ones are:
1. Critics like Porter and Lawler lebeled it as a theory of cognitive hedonism which proposes that
individual cognitively chooses the course of action that leads to the greatest degree of pleasure or
the smallest degree of pain.

2. The assumption that people are rational and calculating makes the theory idealistic.

3. The expectancy theory does not describe individual and situational differences.

But the valence or value people place on various rewards varies. For example, one employee
prefers salary to benefits, whereas another person prefers to just the reverse. The valence for the
same reward varies from situation to situation.

In spite of all these critics, the greatest point in me expectancy theory is that it explains why
significant segment of workforce exerts low levels of efforts in carrying out job responsibilities.

6. Porter and Lawler’s Expectancy Theory:

In fact, Porter and Lawler’s theory is an improvement over Vroom’s expectancy theory. They
posit that motivation does not equal satisfaction or performance. The model suggested by them
encounters some of the simplistic traditional assumptions made about the positive relationship
between satisfaction and performance. They proposed a multi-variate model to explain the
complex relationship that exists between satisfaction and performance.
What is the main point in Porter and Lawler’s model is that effort or motivation does not lead
directly to performance. It is intact, mediated by abilities and traits and by role perceptions.
Ultimately, performance leads to satisfaction,. The same is depicted in the following Fig ;

There are three main elements in this model. Let us briefly discuss these one by one.

Effort:
Effort refers to the amount of energy an employee exerts on a given task. How much effort an
employee will put in a task is determined by two factors-

(i) Value of reward and

(ii) Perception of effort-reward probability.

Performance:
One’s effort leads to his/her performance. Both may be equal or may not be. However the
amount of performance is determined by the amount of labour and the ability and role perception
of the employee. Thus, if an employee possesses less ability and/or makes wrong role perception,
his/her performance may be low in spite of his putting in great efforts.

Satisfaction:
Performance leads to satisfaction. The level of satisfaction depends upon the amount of rewards
one achieves. If the amount of actual rewards meet or exceed perceived equitable rewards, the
employee will feel satisfied. On the country, if actual rewards fall short of perceived ones, he/she
will be dissatisfied.

Rewards may be of two kinds—intrinsic and extrinsic rewards. Examples of intrinsic rewards are
such as sense of accomplishment and self-actualisation. As regards extrinsic rewards, these may
include working conditions and status. A fair degree of research support that, the intrinsic
rewards are much more likely to produce attitudes about satisfaction that are related to
performance.

There is no denying of the fact that the motivation model proposed by Porter and Lawler is quite
complex than other models of motivation. In fact motivation itself is not a simple cause-effect
relationship rather it is a complex phenomenon Porter and Lawler have attempted to measure
variables such as the values of possible rewards, the perception of effort-rewards probabilities
and role perceptions in deriving satisfaction.

They recommended that the managers should carefully reassess their reward system and
structure. The effort-performance-reward-satisfaction should be made integral to the entire
system of managing men in organisation.

7. Alderfer’s ERG Theory

To bring Maslow’s need hierarchy theory of motivation in synchronization with empirical

research, Clayton Alderfer redefined it in his own terms. His rework is called as ERG theory of
motivation. He recategorized Maslow’s hierarchy of needs into three simpler and broader classes
of needs:

 Existence needs- These include need for basic material necessities. In short, it includes
an individual’s physiological and physical safety needs.
 Relatedness needs- These include the aspiration individual’s have for maintaining
significant interpersonal relationships (be it with family, peers or superiors), getting
 public fame and recognition. Maslow’s social needs and external component of esteem
needs fall under this class of need.
 Growth needs- These include need for self-development and personal growth and
advancement. Maslow’s self-actualization needs and intrinsic component of esteem needs
fall under this category of need.

The significance of the three classes of needs may vary for each individual.
Difference between Maslow Need Hierarchy Theory and Alderfer’s ERG Theory

ERG Theory states that at a given point of time, more than one need may be operational.

ERG Theory also shows that if the fulfillment of a higher-level need is subdued, there is an
increase in desire for satisfying a lower-level need.

According to Maslow, an individual remains at a particular need level until that need is
satisfied. While according to ERG theory, if a higher- level need aggravates, an individual
may revert to increase the satisfaction of a lower- level need. This is called frustration-
regression aspect of ERG theory. For instance- when growth need aggravates, then an
individual might be motivated to accomplish the relatedness need and if there are issues in
accomplishing relatedness needs, then he might be motivated by the existence needs. Thus,
frustration/aggravation can result in regression to a lower-level need.

While Maslow’s need hierarchy theory is rigid as it assumes that the needs follow a specific
and orderly hierarchy and unless a lower-level need is satisfied, an individual cannot
proceed to the higher-level need; ERG Theory of motivation is very flexible as he perceived
the needs as a range/variety rather than perceiving them as a hierarchy. According to
Alderfer, an individual can work on growth needs even if his existence or relatedness needs
remain unsatisfied. Thus, he gives explanation to the issue of “starving artist” who can
struggle for growth even if he is hungry.

GROUP DYNAMICS

Meaning and Definition of Group Dynamics:

“The social process by which people interact face to face in small groups is
called group dynamics”. It focuses on the team work wherein small groups are
constantly in contact with each other and share common ideas to accomplish
the given tasks.
Features of Group Dynamics:
The important features of Group Dynamics are as follows:
1.Perception: Each member perceives the group differently, based on their
own learning and background. If the members are property trained and
motivated, group strength can be developed.
2.Motivation: The group is developed taking into consideration the individual
interests. Issues like promotions, pay, working conditions etc are tackled with
jointly with the help of groups.
3. Group goals: A goal is used for motivating the employees. If all the
members of the group accept their respective responsibilities, group activities
are evolved and all the members perform successfully.
4. Group organisation: A group is just like an organization, which is
composed of different members to achieve its goals.
5.Interdependency: If the individuals start supporting each other and interact
with each other, they form a group. If they develop it as a permanent system, it
becomes an organization.
6.Interactions: Interaction among the members may take different forms like
verbal, physical, emotional etc. Whatever the form of interaction, it should be
such that each person influences and is influenced by other.

TYPES OF GROUPS
1. Formal Groups: By formal groups, we mean those groups defined by
the organization’s structure, with designated work assignments and
establishing tasks. In formal groups, the behaviours that one should
engage in are stipulated by and directed towards organizational goals.
 Features of formal groups:
(i) These are created by the management to perform the assigned duties.
(ii) These groups may be either permanent or these formal groups may
be constituted on temporary basis for fulfilling certain specified
objectivities.
 Formal Groups are sub classified into the following groups:
(i) Command groups: It is relatively permanent and is specified by the
organization chart. It comprises of managers or supervisors and
subordinates, who meet regularly to discuss general and specific
ideas to improve product or service. In business organizations, most
employees work in such command groups.
(ii) Task Forces: Task groups are also organizationally determined. But
it is a temporary group representing the employees who are working
together to complete a job task or particular project.
(iii) Committees: The committees are also set up for some special
projects. These can be permanent such as planning committee, or a
budget committee and may become an integral part of the
organizational structure.
2. Informal Groups: Informal groups are alliances that are neither
formally structured nor organizationally determined.
 Features of Informal groups:
(i) Though officially unrecognized these groups have their own
structure, with their own leaders, and followers, group goals, social
roles and working patterns.
(ii) The informal groups are more flexible than formal groups.

 Different types of Informal organizations:

(i) Interest and Friendship Groups: People who may or may not be
aligned into common command or task groups may affiliate to attain
a specific objective with which each is concerned. This is called an
interest group. A friendship group includes close friends or relations.
(ii) Cliques: These groups consist of colleagues or those who commonly
associate with each other and observe certain social norms and
standards, but the number of members tends to be smaller, and only
rarely exceeds five or six.
(iii) Sub-Cliques: This groups consists of some members of a clique
inside the organization forming a group along with persons outside
the organization.

REASONS FOR GROUP FORMATIONS

(A) From Member’s Point of View:
1. Companionship
2. Identity
3. Information
4. Security
5. Esteem
6. Sense of Belongingness
7. Outlet for Frustrations
8. Perpetuation of Cultural Values
9. Generation of New Ideas
10. Self-Evaluation
11.Job Satisfaction
12.Power

(B) From Organization’s Point of View:

1. Lightening of Responsibility
2. Filling the Gaps
3. Restraining the Authority
4. Proper and Careful Planning
5. Information
6. Potential Formal Managers

STAGES OF GROUP DEVELOPMENT

1. Forming: The forming stage is when the group is just formed and
members are formally placed together in a work group. At this stage,
 group members try to comprehend where they stand in the group and
how they are being perceived by others in the group.
2. Storming: Due to the newness of the group, there are limited
interactions initially among the members of the group. However, small
groups of two or three members interact with each other and make an
effort to get to know each other better. Thus, subgroups are formed. At
this stage, disagreements tend to get expressed among the group
members and feelings of anxiety and resentment are also expressed.
3. Norming: Norming is the next stage where the disagreements,
differences and power issues which were dominant at the storming stage
gets worked out. The group sets norms, tries to attain some degree of
cohesiveness, understands the goals of the group, starts making good
decisions, expresses feelings openly and makes attempts to resolve
problems and attain group effectiveness.
4. Performing: At the performing stage, the group has matured fully. The
group evaluates members’ performance so that the group members
develop and grow. The task performance levels are high and member
satisfaction, pride and commitment to the group are also high.
5. Adjourning: For permanent work groups, performing is the last stage in
their development. However, for temporary committees, teams, task
forces and similar groups that have a certain specific and limited task to
perform, there is adjourning stage.

MANAGEMENT OF CONFLICT
Meaning and Definition of Conflict

Follett simply defines conflict as, “the appearance of difference, difference of

opinions, of interests.”

 FEATURES OF CONFLICT

From the organizational point of view following are the broad features of
conflict:

1. Conflict occurs when individuals are not able to choose among the
available alternative courses of action.
2. Conflict between two individuals implies that they have conflicting
perceptions, values and goals.
3. Conflict is a dynamic process as it indicates a series of events. Each
conflict is made up of a series of interlocking conflict episodes.
4. Conflict must be perceived by the parties to it. If no one is aware of a
conflict, then it is generally agreed that no conflict exists.

 TYPES OF CONFLICT
Thomas and Schmidt have reported that the managers spend up to 20%
of their time in dealing with conflict situations. Hence, it is very
important that the managers should understand the types of conflict they
have to deal with so that they can find out techniques to deal with the
conflicts in each type of category.
Conflicts can be classified as:
(i) Individual level conflict
(ii) Interpersonal conflict
(iii) Group level conflict
(iv) Organization level conflict
(I) Individual level/ Intra individual conflict
 Intra individual conflict is perhaps, the most difficult type of conflict to
analyze, since it is internal to the person. The organizational goals are always
in direct conflict with the individual goals of employees causing them to be
frustrated, alienated and threatened. Most of the people working in the
organizations are like inert instruments, mere appendages in the production
process.

The conflict in individuals is caused by the following factors:

1. Unacceptability
2. Incomparability
3. Uncertainty

(II) Interpersonal conflict

Interpersonal conflict involves conflict between two or more individuals

and is probably the most common and most recognized conflict.

Four sources of interpersonal conflict:

1. Personal Differences
2. Information Deficiency
3. Role Incompatibility
4. Environment Stress

(III) Group level conflict

 A group consists of two or more persons who are in interaction with each
other, have a well-defined structure of role and status relations and have a
system of values and norms of behaviour for the smooth working of the group.
In this process of interaction, two types of conflict arises (A)Intra group and
(B) Inter group.

(A) Intra Group Conflict

Intra group conflict arises when differences crop up between the
members of the group. The individual may want to remain in the group
for social needs but may disagree with the group methods.
(B) Inter Group Conflict
Conflicts between different groups in the organization are known as
intergroup conflicts. Inter-group conflict may also be stated in terms of
organizational conflict. Causes of intergroup conflict may be
summarized under four heads:
(i) Absence of joint decision making
(ii) Difference in goals
(iii) Difference in perception
(iv) Difference in goals as well as perception.

(IV) Organization-level conflict

The organization level conflict can be between the buyer and seller
organization, between union and organizations employing the members,
between government agencies that regulate certain organizations and the
organizations that are affected by them.
 CONFLICT MANAGEMENT

There may be two approaches for managing the organizational conflict

(i) Preventive measures and (ii) Curative measures

(i)Preventive Measures

1. Establishing Common Goals

2. Reduction in Interdependence
3. Reduction in Shared Resources
4. Trust and Communication
5. Coordination
6. Exchange of Personnel
7. Use of Superior Authority
8. Reorganization of groups

(ii)Curative Measures

The curative measures include the resolution of conflicts when they take
place and become dysfunctional in the organization.

Thomas has offered a contingency approach to resolving conflicts which

we will illustrate now.

1. Avoidance
2. Competing
3. Collaboration
4. Accommodating
5. Compromise.